Over several years of our interaction with CEOs with several IT captives and service providers, we could see one area of significant concern, ‘Trust' between the two parties. The world of IT Vendors brings immense benefits to companies, but the level of trust has always been low on account of many factors that cannot be managed by either of the parties.
Outsourcing has always taken place out of the need of cost saving and better value. Outsourcing, however, is not a term that has originated in today’s world but has been in existence since over hundreds of years ago for the similar two reasons of; cost saving and lack of skilled labor. With technological advancements, development and growth of telecommunication and internet, distances merged and nations became interconnected.
The role of the Chief Information Officer (CIO) is one that has seen continuous change over the years, yet we are only just beginning. Next up is the digital revolution, already a train which we all have to jump onto. It is providing our companies with an opportunity to add amazing new capability, and new business opportunities in ways we never planned or could have predicted.
Companies looking to outsource their Information Technology requirements have had two options to choose from, either they work with a third-party service provider or they set up a captive center. Captive centers have been witnessing renewed interest from companies, but the model has some pros and cons, which we will be examining here.